Credit cards are simple to use but complex to understand. For this reason, credit card debt is referred to as revolving debt. No matter how high your credit limit is, it's generally recommended that you don't charge more than you can afford to return at the end of each month.

Here are five ways to avoid becoming trapped in credit card debt.

1. Understand Your Credit Card Terms and Conditions-

The fees and interest charges that you may pay as a cardholder are spelled out in the terms and conditions of your credit card. This document contains the annual percentage rate (APR) for purchases, debt transfers, cash advances, and penalty APR for the credit card. It also specifies the length of the grace period and the minimal interest rate if you have a balance. The yearly charge, as well as costs for balance transfers, cash advances, overseas transactions, late payments, and returned payments, will all be included.

2. Don't Spend Money You Can't Afford-

People frequently purchase extremely costly items that they cannot afford due to peer pressure or to retain their status. They don't think twice about it, knowing that they'll have to pay it back eventually. So, attempt to stay away from products that are beyond your price range or budget. It is a wise decision to purchase only those items that you can simply pay off later without sliding into debt.

3. Maintain a high credit score-

Building excellent credit requires keeping debt levels low, paying all payments on time, and minimizing the amount of new credit you apply. If you want to purchase a house, go to college, or buy a car, you may not be able to escape debt. With a decent credit score, however, you may restrict your monthly payments and acquire a cheaper interest rate. The better your credit score, the more likely a lender would accept your application and provide you with the best conditions available, saving you money.

4. Make an Emergency Fund-

Apart from paying off credit card debt, it's critical to plan your money so that you don't have to rely on credit cards in the future. As a result, your first financial priority should be to establish an emergency savings fund. Most people don't have the finances set up to deal with these sorts of unexpected bills since they are so enormous and unpredictable. That's why we promote the need of starting emergency savings account so that credit cards aren't required to get through future difficulties.

5. Keep paying your credit card bills on time.

Make sure you don't forget to pay your credit card bills. You should always pay in whole and on time each month. Yes, you will never be able to maintain a balance in this manner. If you find it difficult to recall due dates, you may create a reminder on your phone to remind you of them and avoid credit card trouble.

Want to help to pay off credit card debt contact our debt consultant by phone call 0203 318 0990.